Copy of I A P

8/6/2019 Copy of I A P

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INDIAN GARMENT

INDUSTRY


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ACKNOWLEDGEMENT

The fulfillment of any research project work is in consequence of integrated effort of a

number of people. This project report has been possible only through the guidance and

help of many people. I here by take an opportunity to express our sincere thanks to Dr

A.Lakshamana Swamy Head of the Department, MBA for his support and

encouragement thoughout the course of the project work. I would like to express my

genuine gratitude to Mr P.Srinivas Asst.professor for his valuable guidance in research

and analysis through out the project. With his unfaltering support and direction, I am able

to complete this project and learn a lot. The two log submissions during the project period

really helped us in identifying and rectifying the mistakes and shortcomings in the

project.

I would finally thank all those friends who helped us in the completion of this project.


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EXECUTIVE SUMMARY

Fashion is serious business, everywhere. Admittedly, India was a latecomer in the scene,

but the pace now is scintillating. This is testified through the escalating figures of the

garment market as also by the growing tally of fashion brands and retailers who have

occupied substantial share of the countrys retail space. Truly, the clock cannot be turned

back now.

Over the past year, the garment industry has been building up on its capacities at various

levels, expanding its product base, incorporating innovative technology, and engineering

newer avenues of business. This sector, being one of the largest industrial sectors of the

country, is a major propellant of the economys growth. Inherent issues and challenges

dominate the industry. With the changing dynamics of doing business in a rapidly-

changing global economic scenario, the sector needs to identify scopes for potential

business ideas and overcome challenges by converting them into fresh opportunities.

The project aim is to understand how various movements in the economy affect the

garment industry. An in-depth analysis for implications of various government policies

on garment industry has also been done. The project work also highlights how important

is the garment industry to the growth of our economy. The study also gives insights about

the demographics and psychographics of Indian consumers, the key players in the

industry and recent trends in the industry.


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OBJECTIVES

The objectives of the project work are:

y To understand the impact of various government policies on Garment industry.

y To analyze various opportunities and threats confronted to Garment industry.

y To understand the demographics and psychographics of Indian consumers .

y To understand the reasons for Indias recent sluggish performance in exports

for textiles & garments.

y To understand the entire process of garment manufacturing and budgeting

implications at each stage of manufacturing process.

y To study the trends in the apparel industry (Retail, Exports & Technology).


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INDIAN GARMENT INDUSTRY

The apparel and industry occupies a unique and important place in India. It is one of the

earliest industries to come into existence in the country. The apparel industry caters to

one of the most basic requirements of people and holds importance; maintaining the

prolonged growth for improved quality of life. The sector has a unique position as a self-

reliant industry, from the production of raw materials to the delivery of end products,

with considerable value-addition at every stage of processing. Over the years, the sector

has proved to be a major contributor to the nations' economy. Its immense potential for

generation of employment opportunities in the industrial, agricultural, organized and

decentralized sectors & rural and urban areas, especially for women and the

disadvantaged is noteworthy.

History

The history of apparel in India dates back to the use of mordant dyes and printing blocks

around 3000 BC. The foundations of the India's textile trade with other countries started

as early as the second century BC. A hoard of block printed and resist-dyed fabrics,

primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the proof of

large scale Indian export of cotton textiles to the Egypt in medieval periods.

During the 13th century, Indian silk was used as barter for spices from the western

countries. Towards the end of the 17th century, the British East India Company begun

exports of Indian silks and several other cotton fabrics to other economies. These

included the famous fine Muslin cloth of Bengal, Orissa and Bihar. Painted and printed

cottons or chintz was widely practiced between India, Java, China and the Philippines,

long before the arrival of the Europeans.

Growthof Indian Garment Industry

The industry has already given ample hint of ingenuity, as is evident from the\ revival of

consumer enthusiasm in the seemingly stagnant menswear segment, besides remarkable


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growth in categories like sports wear, casual wear and party wear. The apparel market has

grown 15.5% to INR 1,224 billion

MAJOR SEGMENTS

Apparel industry has been broadly classified into three segments:

1. Men 24.9%

2. Women 40.2%

3. Kids 34.8%Market Share ofMajor Apparel Segments

Total Size: Rs 122,400 Crore

Kids' Apparel + Uniforms Mens' Apparel Womens' Apparel

Compound Annual Growth Rate (CAGR) of

different segments

Type CAGR (2003-08)

Yarn 31.79%

Fabric 9.04%

Made-ups 6.18%


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TYPES OF MERCHANDISE AND THEIR DEMAND

The consumer has all kinds of demands for apparel. The consumer demand can

bebroadly trifurcated into three segments: Basic, Basic Fashion and Fashion Apparel.

Basic apparel consists of highest volume with moderate demand uncertainty and is priced

relatively low. On the other hand, fashionable attire comprises lowest volume with

volatile demand, but is highly priced. Mass-product is the feature of basic-product

segment and customized merchandise becomes the hallmark of fashion-product category.

Therefore, depending to which demand-segment they cater to, apparel organization needs

to formulate suitable supply strategy.

SUPPLY CHAIN IN APPAREL SECTOR

Supply Chain Management is the integration of key business processes from end user to

original suppliers that provides products, services, and information that add value for

customers and other stakeholders.

The Apparel Supply Chain

The Apparel Supply Chain comprises diverse raw material sectors, ginning facilities,

spinning and extrusion processes, processing sector, weaving and knitting factories and

garment (and other stitched and non-stitched) manufacturing that supply an extensive

distribution channel. This supply chain is perhaps one of the most diverse in terms of the

raw materials used, technologies deployed and products produced. This supply chain

supplies about 70 per cent by value of its production to the domestic market. The

distribution channel comprises wholesalers, distributors and a large number of small

retailers selling garments and textiles. It is only recently that large retail formats are

emerging thereby increasing variety as well as volume on display at a single location.

Another feature of the distribution channel is the strong presence of agents who secure

and consolidate orders for producers. Exports are traditionally executed through Export

Houses or procurement/commissioning offices of large global apparel retailers.


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It is estimated that there exist 65,000 garment units in the organized sector, of which

about 88 per cent are for woven cloth while the remaining are for knits. However, only

3040 units are large in size (as a result of long years of reservation of non-exporting

garment units for the small scale sectors a regulation that was removed recently). While

these firms are spread all over the country, there are clusters emerging in the National

Capital Region (NCR), Mumbai, Bangalore, Tirupur/Coimbatore, and Ludhiana

employing about 3.5 million people. According to our estimate, the total value of

production in the garment sector is around Rs.1,0501,100 billion of which about 81 per

cent comes from the domestic market. The value of Indian garments (e.g. saree, dhoti,

salwar kurta, etc.) is around Rs.200250 billion. About 40 per cent of fabric for garment

production is imported a figure that is expected to rise in coming years.

The weaving and knits sector lies at the heart of the industry. In 2004-05, of the total

production from the weaving sector, about 46 per cent was cotton cloth, 41 per cent was

100% non-cotton including khadi, wool and silk and 13 per cent was blended cloth.

Three distinctive technologies are used in the sector handlooms, powerlooms and

knitting machines. They also represent very distinctive supply chains. The handloom

sector (including khadi, silk and some wool) serves the low and the high ends of the

value chain both mass consumption products for use in rural India as well as niche

products for urban & exports markets. It produces, chiefly, textiles with geographical

characterization (e.g., cotton and silk sarees in Pochampally or Varanasi) and in small

batches. Handloom production in 2003-04 was around 5493 mn.sq.meters of which about

82 per cent was using cotton fiber. Handloom production is mostly rural (employing

about 10 million, mostly, household weavers) and revolves around master-weavers who

provide designs, raw material and often the loom. Weaving, using power looms was

traditionally done by composite mills that combined it with spinning and processing

operations. Over the years, government incentives and demand for low cost, high volume,

standard products (especially sarees and grey cloth) moved the production towards power

loom factories and away from composite mills (that were essentially full line variety

producers). While some like Arvind Mills or Ashima transformed themselves into

competitive units, others gradually closed down. In 2003-04, there remained 223


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composite mills that produced 1434 million. sq. mts. of cloth. Most of these mills are

located in Gujarat and Maharashtra. Most of the woven cloth comes from the power

looms (chiefly at Surat, Bhiwandi, NCR, Chennai). In 2005, there were 425,792

registered

power loom units that produced 26,947 mn. sq. mts of cloth and employed about

4,757,383 workers. Weaving sector is predominantly small scale, has on an average 4.5

power looms per unit, suffers from outdated technology, and incurs high co-ordination

costs. Knits have been more successful especially in export channels. Strong production

clusters like Tirupur and Ludhiana have led to growth of accessories sector as well, albeit

slowly. The hosiery sector, on the other hand, has largely a domestic focus and is

growing rapidly. The spinning sector is perhaps most competitive globally in terms of

variety, unit prices and production quantity. Though cotton is the fiber of preference,

man-made fiber (polyster fibre and polyster filament yarn) is also produced by about 100

large and medium size producers. Spinning is done by 1566 mills and 1170 Small and

Medium Enterprises (SME). Mills, chiefly located in North India, deploy 34.24 mn.

spindles and 0.385 mn rotors while the SME units produce their yarn on 3.29 mn spindles

and 0.119 mn. Rotors producing 2270 mn kg of cotton yarn, 950 mn kg of blended yarn

and about 1106 mn kg of man-made filament yarn every year. Worsted and non-worsted

spindles (producing woolen yarn) have also progressively grown to 0.604 mn and 0.437

mn respectively. Spinning sector is technology intensive and productivity is affected by

the quality of cotton and the cleaning process used during ginning.

The processing sector, i.e., dyeing, finishing and printing is mostly small in scale. The

largest amongst these would dye and finish about 5000 m/day. The remaining are

independent process houses (or part of composite mills) that use automated large batch or

continuous processing and have an average scale of about 20,000 m of cloth daily. About

82.5 per cent or 10,397 units are hand processors who dye cloth or yarn manually and dry

in open sunshine. Of the remaining (and these use automated and semi-automated

equipment), 2076 are independent process houses. Cotton remains the most significant

raw material for the Indian textile industry. In 2003-04, 3009 mn kg of cotton was grown

over 7.785 mn acres.


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Other fibers produced are silk (15742 tonnes), jute (10985000 bales), wool (50.7 mn kg)

and man-made fibers (1100.65 mn kg). Cotton grows mostly in western and central India,

silk in southern India, jute in eastern and wool in northern India. Significant qualities of

cotton, silk and wool fibers are also imported by the spinning and knitting sectors.

(Except for garments, al data in this section was obtained from OTC 2004 and Texmin

2005.)

RETAIL SCENARIO

This can be sub divided into brand and non-brand. The branded retail sector is not more

than 10 % of the total. A retailer ( whether shop owner or mall) has to keep a higher

margin for branded garments than for unbranded to take care of returns on his

investments as well as discount on end of season sales or out of fashion stocks and

overheads.

The retail mark up is 50% for branded and 25% for non branded garments. On this basis,

the size of the retail market for garments can be estimated to be around Rs. 4 to 5 trillion

or around Rs. 500,000 crore. With malls coming up all over Indian metros, retail trade in

garments is getting better organized than earlier. Attention is now shifting to B class

and C class cities as well as the rural sector. With the growth of the economy, thanks to

economic liberalization, the result of which is percolating to our farm lands as well as

spread of education in the rural population is fast picking up to the urban level. Farm

produce is being is better organized to reduce wastage and increase the income of

farmers, Rural indebtedness is being better bank managed than the earlier system of

dependence on money-lender sharks.

Better some villages, especially in Maharashtra, the rest can claim a standard of life aboutequal, and in some villages, even better than their urban cousins. In the last six months or

so, inflation has been a bug-bear. But this is due to two factors namely unseasonable

weather and strident increase in global oil prices.


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INDIAN APPAREL SECTOR TRENDS

Salient feature of India Apparel Sector

y Maximum employment with minimum invest ment.

y Hgh percentage of women employment 35 %

y 95% production in small-scale sector

y 3% share in global apparel exports

y Cluster based growth concentrated primarily in 8 clusters, i.e Tirupur, Banglore,

Delhi /Noida /Gurgaon, Mumbai, Kolkatta, Jaipur and Indore

y Contributes around 8% to India s overall exports and 48% to textile Exports


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Production in Apparel Sector

The apparel sector is expected to record a CAGR of nearly 15% in quantity terms and 20

% in value terms in 11th plan period. By 2001-12, production is expected to reach 19 bn

pcs , amounting to rs 299300 crs, 32% of this population is expected to be generated by

the export sector. In value terms, 51 % of the population is expected to be contributed by

exports. The accent is on the value added growth both for domestic and export market

India in recent years has been the focal point of continuous growth and development

making it one of the fastest growing economies of the world. It is the 4th largest economy

in terms of Purchasing Power Parity, after USA, China & Japan, and is rated among the

top 10 FDI destinations.

The Indian consumer is evolving and driving retail growth due to increased consumption.

Private consumption growth contributes to more than half of the GDP growth and is

growing in double digit figures. Several businesses are reacting to this evolution

positively, both through pull and push phenomenon. Following a similar trend, the Indian

textile and apparel industry is also experiencing rapid changes and growth. Apparel today

has the largest share of the modern organized retail in India i.e. 20% of the current market

of Rs. 56,000 crore and this is expected to grow at a constant rate of 20% over the next 4

years.

These are few recent trends pertaining to the garment industry:

Trend 1

y Indian consumers are converting from stitched apparel to ready-to wear

causing a surge in discount retailing.

Trend 2

y Consumers now desire branded products in all aspects of their life


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Trend 3

y Designers realize the huge opportunities in ready-to-wear market and are

introducing prt lines

Trend 4

y Indian companies see a huge opportunity in partnering with luxury brands

wishing to enter India

Trend 5

y Worldwide surge in demand for organic and eco-friendly products

Trend 6

y Kids and youth are influenced by icons & characters and since they identify

with these characters and icons more strongly.

Trend 7

y Companies are exploring new' locations to retail in order to increase visibility of

their brand

Trend 8

y Textile companies are strengthening front and back end operations through

mergers and acquisitions


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TECHNOLOGY AND INDIAN GARMENT INDUSTRY

The Indian garment industry is characterized by constant change. What is in vogue today

will be pass tomorrow. The size of India garment industry is has also been expanding

and it is expected to drive exports worth US$ 25 billion by 2010. In order to meet this

growth, Indian manufacturers would have to scale up their manufacturing capacity five-

fold, despite an expansion of 30 percent planned by top players. The liberalization of

world trade and abolition of the quota regime have opened up new opportunities for

Indian manufacturers.

The challenges for Indian garment manufacturers are multifold

y Keeping abreast of the market trends

y Material usage patterns

y Knowledge of resource points

y Being in a position to deliver high quality goods in shorter lead times at

competitive rates.

The garment industry specializes in offering a plethora of products with multipartspecifications catering to diverse customer needs across markets viz. culture, climate and

seasonal variations. Customers and retailers are forcing manufacturers to deliver higher

quality at lower costs in short delivery times. To survive in this cut-throat business,

garment manufacturers need to out think and out perform competition. They have to meet

all of the following quality standards:

y Dimensional stability

y Seam strength

y Abrasion resistance

y Seam slippage and other test descriptions.

Also, the regulatory concern for safeguarding the environment makes it necessary for

manufacturers to strictly conform to ecological requirements. The moot point for Indian


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Players will be volume-driven efficiencies combined with superior design capabilities,

scalable and flexible manufacturing processes and a well integrated supply chain.

Automation of the various processes from raw fabric to finished garment (maintenance of

inventory records, inventory planning, sales forecasting, distribution and transportation

management) and smooth integration with the supply chain can be achieved in a cost-

effective manner, using an efficient IT solution like ERP. In order to adopt to play on the

world stage, garment manufacturers have to adopt IT as a strategic option to scale up

efficiencies and improve business performances.

Technology plays a very vital role in following areas of

Garment Industry:

y Season collection planning

y Garment style management

y Sales order management

y Material requirement planning

y Material procurement management

y Inventory management

y Production management

y Quality management

y Exports & quota management


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Over the past few years Computer Aided Designing (CAD) has also become a very

important part of both textile and garment industries. CAD is industry specific design

system using computer as a tool. CAD is used to design anything from an aircraft to

knitwear. Originally CAD was used in designing high precision machinery solely it found

its way in other industries also. In 1970's it made an entry in the textile and apparel

industry. Most companies abroad have now integrated some form of CAD into their

design and production process.

In fact, according to National Knitwear Association of US, of 228 Apparel

manufacturers:

y 65% use CAD to create color ways

y 60% use CAD to create printed fabric design

y 48% use CAD to create merchandising presentation

y 41% use CAD to create Knitwear designs

Design choices and visual possibilities can be infinite if the designer is given the time and

freedom to be creative and to experiment using the computer. Today in our country

automation is not only used for substituting the labour, it is also adopted for improving

quality and producing quantity in lesser time. However, a CAD system is only as good

(or as bad) as the designer working on it. Computer only speeds up the process of say

repeat making, color changing, motif manipulation etc. It is actually the CAM


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Types of CAD Systems

Textile Design Systems

Woven textiles are used by designers and merchandisers for fabrics for home furnishing

and to men-women-children wear. Most fabrics whether yarn dyes, plain weaves,

jacquards or dobbies can be designed and infact are invariably used abroad using a CAD

system for textiles. Similarly embroideries are also developed at CAD workstations.

Knitted Fabrics

Some systems specialize in knitwear production and final knitted design can be viewed

on screen with indication of all stitch formation. For instance a CAD program will

produce a pullover graph that will indicate information on amount of yarn needed by

color for each piece. Another example of the new technology in the industries using a

yarn scanner which is attached to the computer scans a thousand meters of yarn and then

simulates a knitted/ woven fabric on-screen. This simulation will show how the fabric

will look like if woven from that yarn.

Printed Fabrics

The process involves use of computers in design, development and manipulation of

motif. The motif can then be resized, recoloured, rotated or multiplied depending on the

designer's goal. Textures and weave structures can be indicated so that printout either on

paper or actual fabric looks very much the way the final product will look. The textile

design system can show color ways in an instant rather than taking hours needed for hand

painting. New systems are coming which have built-in software to match swatch color to

screen color to printer color automatically i.e. what you see is what you get.


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Illustrations/ Sketch Pad Systems

These are graphic programmes that allow the designer to use pen or stylus on electronic

pad or tablet thereby creating freehand images which are then stored in the computer. The

end product is no different from those sketches made on paper with pencil. They have

additional advantage of improvement and manipulation. Different knit and weave

simulations can be stored in a library and imposed over these sketches to show texture

and dimensions.

Embroidery Systems

The designs used for embroidery can be incorporated on the fabric for making garment.

For this special computerized embroidery machines are used. Designers can create their

embroidery designs or motifs straight on the computer or can work with scanned images

of existing designs. All they need to do is assign color and stitch to different parts of the

design. This data is then fed into an embroidery machine with one or multiple heads for

stitching.

Apparel Industry and Computers Digitising Systems

Digitisers put original patterns into the computer for use and storage. It can be done by

defining the X, Y co-ordinates of series of selected points around the pattern. These basic

patterns can be manipulated with the help of a computer, for example in case of trousers,

darts can be moved, pleats can be created or flair can be introduced. This way new design

can be created on screen from pre-existing patterns. Today large scanners are also used to

input pattern shapes instead of tracing patterns on a digitizer.

Grading Systems

After a sample size pattern has been put, it has to be graded up and down in size. Certain

points on the pattern are considered as "growth points" or places at which the pattern has


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to be increased or decreased to accommodate changing body size. At each growth point

the operator indicates the grade rule to the computer. The system will then automatically

produce the pattern shapes in all the pre-specified sizes. Say if we define pattern for size

30, it can be easily graded for size 32/34/36 and so on.

BUDGETING IMPLICATIONS

Like other industries, garments sector also has its wish-list for consideration in the recent

union budget. The wish list segregated into segments viz.

a. Policy issue

b. Issues pertaining to domestic industry

c. Issue pertaining to the export industry

d. Procedural issues

Policy Issues

Removal of state and corporation Taxes on export of garments Export of garments are

burdened with taxes and duties levied by :

a) Central government

b) State government

c) Municipal corporation


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Appreciation of the rupee has further lowered earnings of Indian exporters ,where as

those of our Asian competitors have either appreciated less or even depreciated. As a

result, prices of Indian garments have become uncompetitive against Asian competitors.

Exporters are attempting to reduce the hardship of RUPEE appreciation by quoting in

other currencies but importers take advantage of dollar quotation by our competitors and

insist on dollar quotations. Recent increase in drawback rates has to some extent but the

major burden of the state and corporation levies continues to hinder exports. These

collectively work out to 6 percent FOB. Further, introduction of vat was expected to

reduce prices but since textiles have not been included in vat , garments units are not able

to offset taxes and duties paid on inputs.

Import Duty of Garment Machinery

Import duty on most garment machinery is 5 percent plus countervailing duty. Indigenous

machinery manufactures do not manufacture garments machinery of similar speeds and

or stitches per minute and further, since countervailing is levied with the sole objective of

the protecting the domestic industry, it is hoped that the budget proposals will remove

countervailing duty from all garments machinery entitled to concessional duty.

Labour Reforms

Immediate reforms in labour laws to help improve production and productivity of

garments are called for:

These include: -

y Increase in working hours from 48 to 60 per week with suitable provision for rest

period

y Female workers to be employed in the entire second shift

y In view of the second nature of the garment industry, contract labors be permitted

on condition of a guaranteed employment 100 days in a year.

The sector did get some sops in the budget, these were:


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SEZ- SEZ scheme is likely to continue, as per the assurance given by the Prime Minister.

Six mega clusters are proposed to be developed in power looms, handlooms and

handicrafts. Allocation of Rs.70 crore per cluster. With an immediate provision of Rs 100

crore this year has been envisaged.

Textile Up gradation Fund (TUF) - Allocation for textiles up gradation fund (TUF) has

been increased from Rs. 911 crore to Rs 1090 crore. The budget has also maintained the

provision for Scheme for Integrated Textile Parks (SITP) at Rs. 450 crore. However, the

schemes would not provide immediate support to textiles sector, which is need of the

hour. Increases in subsidy under the TUF scheme can hardly be considered a relief

package looking to the outstanding claims pending with the banks. There are already Rs

600cr plus outstanding according to the banks

Reduction in Excise Duty

The excise duty has been reduced from 16% to 14% under 2008-09 budget but the

concession would prove to be highly elusive for apparel exporters as textile

manufacturers, already struggling with stiff margins, may not be able to pass on the

benefit down the line to exporters.

Non Profit Corporations

The FM has proposed to establish a non profit corporation with intention to garner Rs

15,000 crore as capital from government, the public and private sector and bilateral and

multilateral sources for establishing training institutes including 300 additional ITIs.

A noticeable thing in budget 2008-09 is its silence about how to arrest the slump inemployment intensive industries like textile, garments, leather and handicrafts. Apparel

exports promotion council estimates that if situation remains unchanged, the job losses

this year would be six lakh.


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COTTON THE PRIME RAW MATERIAL

India produces about 5,000 crore square meters of fabric annually with per capita

availability of cloth being 36.2 square meters. As of now 60% of the total produce is

consumed within the country but the share of exports It expected to increase substantially

over the next few years. In value terms is estimated that the apparel and textile market

will be worth USD 87 billion by year 2010 with exports worth USD 45 billion and local

consumption of USD 42 billion. The domestic market for clothing and home textiles is

Estimated to be worth Rs 137,100 crore, of which pure cotton contributes 33% of the

value share, various cotton blends make up 39% and the Remaining 28% value is

realized from non-cottons. Of the 137,100 crore clothing and home textiles domestic

market, cotton and cotton blends contribute approximately Rs 98,766 crore. Of this shareof 100% cotton products is 45,200 crore and that of cotton blends is Rs 53,560 crore.

Mens shirts, kids wear, mens trousers, salwar suits, mens formal suits and jackets

record maximum usage of cotton and cotton blends. After cotton, pure silk, synthetics

and wool are mostly commonly used fabrics.

The Cotton market

As of 2007, the ten largest producers of cotton in the world are: China, India, USA,

Pakistan, Brazil, Uzbekistan, Turkey, Greece Turkmenistan and Syria. The five leading

exporters of cotton are: USA, Uzbekistan, India, Brazil and Burkia Faso. The largest non-

producing importers are Bangladesh, Indonesia, Thailand, Russia and Taiwan.

The demand for cotton is strongly influenced by comparative prices vis- vis manmade

fibers, also known as artificial and synthetic fibers. Artificial fibers like viscose rayon

and acetates are made from organic polymers derived from natural raw materials, mainly

cellulose. Synthetic fibers including acrylics, polyamides and polyesters are generally

derived from petrochemicals and petroleum products. India Demand and Supply situation

for cotton


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Supply

Opening Stock 47.50

Crop size 310.00

Imports 6.50

Total availability 364.00

Demand

Mill consumption 207.00

Small-mill consumption 23.00

Non-mill consumption 15.00

Total Consumption 245.00

Exports 65.00

Total Disappearance 310.00

Carry forward 54.00

KEY PLAYERS

S. no. Menswear Womenswear Kidswear

1. Aditya Birla Nuvo Lilliput

2. Raymonds

3 .Arvind Mills Benetton Kids

4. Koutons ITC Wills Catmos


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Brief Profile of Key Players

Aditya Birla Nuvo

Aditya Birla Group is in the league of Fortune 500.\ It is anchored by an extraordinary

force of 100,000 employees, belonging to 25 different nationalities. In India, the Group

has been adjudged "The Best Employer in India and among the top 20 in Asia" by the

Hewitt-Economic Times and Wall Street Journal Study 2007. The apparel business of

Aditya Birla Nuvo dominates the premium and popular segments of the Indian lifestyle

market with its companies, Madura Garments Lifestyle & Retail and Peter England

Fashions & Retail.

Aditya Birla Nuvo Brands:

y Esprit

y Peter England

y Allen Solley

y Van Heusen

y Louis Philippe


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Aditya Birla Group balance sheet20

(Rs Crore) 2007-08 2006-07 2005-06 2004-05 2003-04

Net fixed assets 1,501.6 1,308.1 1,135.5 810.28 737.5

Investments

Long-term

Investments 3909.3 3,473.9 1,410.2 618.3 581.6

Other

Investments 144.9 375.5 265.6 81.3 160.0

Total

Investments 4,054.2 3,849.4 1,675.8 699.7 741.6

Net current

Assets 1,411.7 972.9 1,127.6 462.7 318.9

Capital

Employed 6,967.5 6,130.5 3,938.9 1,972.61 1,798.0

Net worth represented

Equity share

capital # 95.0 93.3 83.5 59.9 59.9

Share Warrants $ 377.4 - - - - - - - - -

Reserves and

surplus (Net of

Miscellaneous

expenditure not

w/o) 3,551.3 3,031.2 2,124.1 1,294.2 1,204.8

Net worth 4,023.7 3,124.5 2,207.6 1,354.1 1,264.7

Loan fund loans

Long term

Loans 1,841.2 1,869.2 972.5 285.3 211.5


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Short term

Loans 902.2 962.7 591.1 207.7 194.3

Total loan

Funds 2,743.4 2,831.8 1,563.6 493.0 405.8

Deferred tax 200.3 174.1 167.7 125.5 127.5

Capital

Employed 6,967.5 6,130.5 3,938.9 1,972.6 1,798.0

cash Flow of Aditya Mills Ltd ------------------- in Rs. Cr. ----------------

Mar

'06

Mar

'07

Mar

'08

Mar

'09

Mar

'10

12

mths

12

mths

12

mths

12

mths

12

mths

Net Profit Before Tax 0.18 -0.27 -0.22 -0.21 -0.04

Net Cash From Operating Activities 1.02 -0.05 -0.28 -0.07 -0.09

Net Cash (used in)/from

Investing Activities0.09 0.31 0.04 0.10 0.07

Net Cash (used in)/from Financing Activities -0.10 -0.04 0.00 0.00 0.00

Net (decrease)/increase In Cash and Cash

Equivalents1.01 0.22 -0.24 0.03 -0.02

Opening Cash & Cash Equivalents 0.04 1.05 1.27 1.03 1.06

Closing Cash & Cash Equivalents 1.05 1.27 1.03 1.06 1.03


28/54

Raymond

A 100% subsidiary of Raymond Limited, Raymond Apparel Ltd. (RAL) ranks amongst

India's largest and most respected apparel companies. RAL entered into the ready-to-wear

business with the introduction of Park Avenue in 1986 catering to the men's formal wearmarket. Parx was launched in 1998 to address the growing trend of smart casuals. In

2000, Manzoni, a luxury lifestyle brand was launched offering a super-premium formal

range of men's shirts, suits, trousers, jackets, ties and leather accessories. Raymond

identified the vacuum for a high end, casual wear brand and hence decided to acquire

ColorPlus as a part of strategic expansion plan for their ready-to-wear business. Notting

Hill was launched in 2007 to cater to the popular price segment. In addition to this,

Raymond Apparel has also ventured into the kidswear segment with its exclusive Brand

Zapp!

Raymond Brands

y Raymond Finely Crafted Garments

y Manzoni

y Park Avenue

y Park Avenue Woman

y ColorPlus

y ColorPlus Woman

y Parx

y Notting Hill

y Zapp!


29/54


30/54

Cash Flow of Raymond ------------------- in Rs. Cr. -------------------

Mar

'07

Mar

'08

Mar

'09

Mar

'10

Mar

'11

12 mths12

mths12 mths 12 mths 12 mths

Net Profit Before Tax 156.99 86.15 -58.75 18.88 100.02

Net Cash From Operating Activities 57.18 15.52 120.54 75.14 -8.40


Investing Activities-194.22 -13.11 -361.13 23.90 115.39

Net Cash (used in)/from Financing Activities 137.62 -6.20 265.57 -119.27 -101.79


Equivalents0.58 -3.79 24.97 -20.24 5.19



Koutons

Koutons retail is the leading manufacture of readymade and stylish fashion wear brand in

the country today. With more than 1365 outlets across 493 cities in India, Koutons a wide

range of apparels in men, women and children wear. This brand caters to young women

in the age group of 16-34 years and includes apparels like t shirt party wear etc. it also

launched their brands kids junior catering to young boys and girls in the age group 2-14

years. Koutons further plan to enter the footwear segment in October and add mens

innerwear in its portfolio..

Koutons Brands:

y Koutons Menswear

y Charlie Outlaw

y Les Femme

y Koutons Junior


31/54

balance Sheet of Koutons Retail India------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 4.99 27.34 30.55 30.55 30.55

Equity Share Capital 4.99 27.34 30.55 30.55 30.55

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 15.08 135.98 319.08 394.64 474.17

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 20.07 163.32 349.63 425.19 504.72

Secured Loans 32.58 162.43 206.58 520.02 526.18

Unsecured Loans 18.68 47.00 212.69 102.91 133.72

Total Debt 51.26 209.43 419.27 622.93 659.90

Total Liabilities 71.33 372.75 768.90 1,048.12 1,164.62

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 13.71 49.84 75.12 146.02 153.99

Less: Accum. Depreciation 3.07 6.96 16.54 31.34 47.77

Net Block 10.64 42.88 58.58 114.68 106.22

Capital Work in Progress 0.00 7.14 13.68 9.57 54.35

Investments 0.00 0.00 40.52 2.02 1.97

Inventories 97.73 373.84 544.34 747.76 680.03

Sundry Debtors 8.16 20.39 34.94 66.23 148.79

Cash and Bank Balance 2.14 6.98 18.30 34.09 36.86

Total Current Assets 108.03 401.21 597.58 848.08 865.68

Loans and Advances 17.30 44.57 215.43 240.95 338.59

Fixed Deposits 0.00 10.28 0.88 1.19 0.19

Total CA, Loans & Advances 125.33 456.06 813.89 1,090.22 1,204.46

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 58.41 133.96 160.26 171.95 205.17

Provisions 6.27 0.00 0.00 0.00 0.00

Total CL & Provisions 64.68 133.96 160.26 171.95 205.17

Net Current Assets 60.65 322.10 653.63 918.27 999.29


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Miscellaneous Expenses 0.04 0.62 2.49 3.58 2.79

Total Assets 71.33 372.74 768.90 1,048.12 1,164.62

Contingent Liabilities 0.00 2.44 2.44 10.39 0.94

Book Value (Rs) 40.21 59.73 114.44 139.17 165.20

Cash Flow of Koutons Retail India ------------------- in Rs. Cr. -------------------

Mar

'07

Mar

'08

Mar

'09

Mar

'10

12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 52.61 105.16 120.83 124.52

Net Cash From Operating Activities -201.25 -212.25 -68.84 107.97


Investing Activities-35.86 -72.27 -30.99 -52.95

Net Cash (used in)/from Financing Activities 252.22 286.45 115.53 -53.25


Equivalents15.12 1.93 15.69 1.77

Opening Cash & Cash Equivalents 2.14 17.26 19.59 35.28

Closing Cash & Cash Equivalents 17.26 19.18 35.28 37.05


33/54

Arvind Mills

Arvind Mills was established in 1931. It was founded by Kasturbhai Lalbhai, one of the

leading families of Ahmedabad. Arvinds brand portfolio includes: Lee , wrangler,

nautical, Jansport, Kipling, Tommy, Flying Machine, Excalibur, Arrow, US Polo , Izod,

Pierre Cardin , Palm beach ,Cherokee, Gant, Hart Schaffner, Marx, Sanabelt. It

manufactures denims, shirting, khakhis, knits, and garments. The company has a turnover

of approx $500 million and is a part of over 100 years old Lalbhai group.

Arvind entered into exports of garments setting up shirts factories in Bangalore 2001.

This modest beginning has quickly grown to a capacity of around 4.50 million shirts,

annum and the list of customers includes dockers, gap, next, Espirit, FCUK, Osh, Kosh

and many others.

The lalbhai group subsidiary Arvind Mills said recently that it temporarily suspending

expansion plans for two apparel brands, Rider and Hero, which the company had jointly

developed with the US based branded lifestyle apparel player VF Corporation. The two

companies had signed the JV agreement in 2006 establishing the VF Arvind Brands to

design market and distribute VFs branded lifestyle apparel in India.

Arvind Millss Brands

y Flying Machine

y Newport

y Ruf & Tuf

y Excalibur

y Arrow

y Lee


34/54


35/54

Cash Flow of Arvind ------------------- in Rs. Cr. -----------------

Mar

'05

Mar

'06

Mar

'07

Mar

'08

Mar

'09

12

mths

12

mths

12

mths

12

mths

12

mths

Net Profit Before Tax 129.30 136.38 27.71 29.61 -46.96

Net Cash From Operating Activities -37.06 221.79 247.22 345.57 224.96


Investing Activities-143.52 -345.74

-

40.47-212.06

-32.74

Net Cash (used in)/from Financing

Activities180.75 120.67 202.66 139.50 181.71


Equivalents0.17 -3.28 4.09 -5.99 10.51




36/54

Wills Lifestyle

ITCs lifestyle retailing business division has established a nationwide speciality retail

presence through its Wills Lifestyle, a chain of exclusive speciality stores. Wills

Lifestyle, as a fashion destination, offers Wills Classic work wear, wills lifestyle, as a

fashion destination, offers Wills Classic work wear, Wills clublife evening wear and

fashion accessories.

Wills Signature designer wear. ITC forayed into the youth segment with the launch of

john players in December 2002. The brand available pan India through a network of over

1300 multi brands outlets. The launch of Miss Player is currently available at select

exclusive stores, select John Players stores and multi brand outlets. Wills lifestyle

currently command retail space with 50 EBOs of 2,500 sq ft each and plans to add 50

additional EBOs in next two years. John players and miss players is available in 250

EBOs and 1300 MBOs with plan of add 100 more EBOs in next two years.

aditya

raymond

arvind

koutons


37/54

KEY ISSUES IN INDIAN GARMENT SECTOR

Post-MFA Scenario

The Multi-Fiber Agreement (MFA) had been forced in India since 1962, governing the

textile trade between various countries. It was later abolished in 2005. When the MFA

was abolished, it was expected that tariff distortions, which were prevalent earlier, would

gradually disappear, facilitating global trade of textile and apparel. The abolishment of

the quotas did fuel growth of the sector with textile exports growing from US$17 billion

in 2005-06 to US$19.24 billion in 2006-07. The readymade garments segment benefited

the most with the abolishment of the quotas. According to the Apparel Export Promotion

Council (AEPC), readymade garments export from India is expected to reach US$14.5

billion by 2009-10. Presently, it accounts for 43 percent of total textile exports and six

percent of Indias total export.

Fluctuation Rupee Value

The subsequent spurt in exports did elude exporters in the segment as most focused on

short-term gains. But with the economy growing and appreciation in the rupee value,

there was a rather different tale to unfold. With an appreciation in rupee value, the

apparel and textile export industry now needs more introspection to reduce the extent to

the blow. Export agreements, which were conducted in US dollars, faced the most severe

blows.

Though India enjoys the advantage of a host of low costs in textile and apparel

manufacturing, subsidies and supply of cheap labour currently faces threat from its

neighbouring competitors- Bangladesh, Vietnam and Sri Lanka. These countries with

minimal cost, under valued exchanged rates, low taxes, subsidies and plentiful cheap

labour could result in sail of the industry to these locations.


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Lagging in Cost and Technology Spheres

Post MFA, exports splurged and substantial capital expenditures were made to diverse

and also re-inforce production capacity to meet the growing domestic demand. For the

short term this may be fine but mere increasing the productivity was not a solution rather

improving productivity and cost efficiency ought to be the long term goal. In this

segment, Indian Apparel and Textiles companies face threat from low-cost Chinese

Companies while negotiating with tough global buyers.

It has also been observed that the textile and apparel sector witnessed more investment in

existing technology than on new technology. Although nanotechnology has helped in

developing manmade fibres (and filament yarn), the industry still lags behind it

counterparts in the United States, china, Europe and Taiwan. Import of new and advanced

technology could certainly compensate for the losses on account of exports due to

declining dollar.

Existence of long and complex Supply Chains causing lengthening of

lead time

The supply chain in India is highly fragmented mainly due to government (SSI

reservation) and lack of coordination between industry and trade bodies. Existence of

large number of intermediaries adds to the cost but also lengthen the lead times. The

countries who have significantly consolidated their supply chain are globally competitive

Korea, China, Mexico, Turkey.


39/54

EXPORTS IN GARMENTS SECTOR

S N

Country

2010

2009

2008

2007

2006

0

TOTAL

8078.05

8948.44

9218.84

826.81

831.21

1

USA

2678.30

2937.10

2815.24

263.66

278.57

2

UK

905.58

919.39

1106.62

78.21

93.68

3

Germny

615 .15

670.92

766.35

63.35

57.45

4

France

582.75

683.42

668.81

69.39

67.03

5

UAE

438.57

513.17

625.65

38.63

35.12

6 Italy

357.85

437.75

422.72

53.40

46.29

7

Nlands

258 .61

342.56

338.20

37.31

30.90

8

Spain

333.69

330.96

333.71

32.39

33.69

9

Canada

263.74

290.89

252.93

24.88

26.08

10

Saudi

Arbia

193.12

196.07

209.12

10.98

11.27

11

Denmark

162 .17

191.02

197.92

25.21

21.73

12Belgium

120 .70

162.20

176.45

16.99

15.37

13Japan

106.74

127.74

101.38

10.70

13.83

14Sweden

62.58

77.63

76.23

5.44

7.66

15Russia

23.30

57.05

67.32

13.70

5.00

16Mexico

49.54

61.57

66.72

7.14

5.61

17South

Africa

59 .28

50.88

60.74

3.73

2.94

18Ireland

63.18

46.60

56.23

4.62

4.80


40/54

EXPORT TO WORLD (VALUE IN US$ MILLION)

Exporting 2002 2003 2004 2005 2006

Bangladesh 4964 4413 5067 6296 7751

Cambodia 1313 1600 1981 2193 2675

China 20562 41302 26900 52061 33428

India 6028 6037 6846 6625 7009

Indonesia 2909 3875 2921 4052 2961

Pakistan 4790 2228 5811 2710 6125


41/54

Reasons for Indias recent sluggish export performance in

textiles and clothing include:

y Slowdown in demand from some major importers.

y The depreciation of the US dollar, resulting in an appreciation of the rupee vis--

vis competitor countries that were partially or wholly pegged to the US dollar.

y Labour laws and scale economics: Countries like China have historically had

high labour flexibility in their export oriented units. This has allowed them to

achieve large scale in terms of labour force employed in each manufacturing

facility and reap the benefit of scale economies and use the latest advanced

machinery from developed countries. India, in contrast, because of fragmentation

of units and small scale (to avoid labour laws applicable to employees above 100

and procedural biases and rigidities), has purchased relatively less of such

advanced machinery.

y Logistical delays and costs: though the national highways are improving, this is

not true of connectivity to all sources and destinations. The turnaround time in

major ports of India and movement of cargo between ships and source or

destination within India is still plagued by monopolistic bureaucratic structures

with little accountability and incentives for efficient service delivery to the

exporter and importer.

y High cost of power in India this is 1.5-2 times higher then in competing nations.


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MONETARY POLICY FOR THE YEAR

2008-09

y Bank Rate and Repo Rate kept unchanged.

y High priority to price stability, well-anchored inflation expectations and orderly

conditions in financial markets while sustaining the growth momentum,

y Swift response on a continuous basis to evolving adverse international and

domestic developments through both conventional and unconventional measures.

y Emphasis on credit quality and credit delivery while pursuin Financial inclusion.

y Scheduled banks required to maintain CRR of 8.25 per cent with effect from the

fortnight beginning May 24, 2008.

y GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent.

y Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference

for bringing it close to 5.0 per cent as soon as possible.

Going forward, the resolve is to condition policy and perceptions for inflation in the

range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a

medium-term objective.

y Deposits projected to increase by around 17.0 per cent or Rs.5,50,000 crore

during 2008-09.

y Adjusted non-food credit projected to increase by around 20.0 per cent during

2008-09.


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y Active demand management of liquidity through appropriate use of the CRR

stipulations and open market operations (OMO).

Impact of various monetary policy measures

Recent money shortage in market has forced RBI to make changes in its policies so that

the money supply in the market can be increased. Following are the recent changes that

RBI has done in the market. These changes have had positive impact on every industry in

the economy:

Top Fashion Brands Advertised on TV

Rank 2006 20071 Set Wet Zatak Set Wet Zatak

2 D'damas Gold Expressions Forever Mark - DTC

3 D'damas Collection G set Wet Zatak Gold

4 Reid & Taylor Raymond Suitings

5 Koutons Readymades Axe Deodorant

6 Raymond Suitings Axe Vice

7 Integriti Readymades Rexona Deo Roll On

8 Axe Click Wild Stone

9 Titan Quartz Belmonte

10 Siyaram Reid & Taylor


44/54

Print

y 13% growth in advertising volumes of fashion industry on print

during 2007, over 2006.

y

Fashion industry used newspapers and magazines in an advertisingratio of 81:19 during 2007.

y Maximum advertising of fashion brands on general-interest

newspapers and women- interest magazines.

y Koutons ready-mades maintained its first rank in the top 10 brand list

in print across both 2006 & 2007.

y The average ad per day by fashion industry has seen a rise of 27% in

print during 2007.

Radio

y Fashion industry advertising saw a growth of 173% on radio during

2007, as compared to 2006.

y Radio advertising by fashion industry skewed towards Delhi &

Mumbai.

y Pantaloons was the top name in the top 10 brand list on radio during

2007.

y Two-time rise in average ads aired per day by fashion brands on radio

during 2007, over 2006

.


45/54

SWOT ANALYSIS

Strengths

Abundant raw material availability

India is one of the leading producers of natural and man made fibers. The abundance of

raw material allows industry to control cost and reduce over all lead time.

Low cost skilled labour

India has third lowest wage rate as compared to other key garment manufacturing

companies. This provides industry with a distinct competitive advantage.

Presence across value chain

Indian industry has manufacturing capacity present across completeproduct range, that

allows garment manufacturers to source raw material locally and thus reduces the lead

time.

Growing domestic market

The Indian domestic market is extremely sensitive to fashion fads and this has resulted in

development of very responsive garment industry.


46/54


47/54

Opportunities Rising Disposable Income Fifth largest consumer

Liberalizing economy Sizeable urban middle class

OPPORTUNITY MATRIX

Liberalizing economy

Opening up of Indian economy has presented the players with lots of opportunities;

Indian companies are tying with global brands. They are leveraging the brand name of

global brands.

Growing dual income

With number of working womens increasing the dual incomes are income thus income

available at peoples discrete has also increased.

Rising Disposable Income

According to McKinsey Global Institute (MGI), by 2035 over 23 million Indians will

number among the countrys wealthiest citizens. Forecasts for Indias real GDP growth

rate over the coming two decades generally range between 6 and 9% per year. MGI

forecast real compound annual growth of 7.3% from 2005-2025. Average real household

disposable income will grow from 113,744 Rs in 2005 to 318,896 Rs by 2005, a

compound annual growth rate of 5.3%. This is significantly more rapidthan the 3.6%

annual growth of the last two decades.

Sizeable urban middle class


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As Indian incomes rise, the shape of the countrys income pyramid will also change

dramatically. Apart from a substantial reduction in poverty, India will create a sizeable

and largely urban middle class. Middle class comprises two economic segments - seekers

with real annual household disposable income of 200,000 to 500,000 Indian rupees and

strivers at 500,000 to 1,000,000 Indian rupees. In 2005, the Indian middle class was still

relatively small comprising approximately 5% of the population, however middle class is

expected to reach 41% of population by 2025.

Fifth largest consumer

India will become the worlds fifth largest consumer market by 2025. thecombination of

rapidly rising household incomes and a robustly growing population will lead to a

striking increase in overall consumer spending. The aggregate consumption in India will

grow in real terms from 17 trillion Indian rupees today to 34 trillion by 2015 and 70

trillion by 2025 a fourfold increase.

Threats :

State of Recession in the economy Competition from global players

Fluctuation in rupee value Ecological & Social Awareness

THREAT MATRIX

Fluctuation in rupee value

The fluctuation in rupee value posses a big threat in front of importers and exporters. The

exchange value of Rupee against UD Dollar has depreciated to Rs 50.03 which has

resulted in huge losses for the importers. Thus there is always a great threat for players in


49/54

international trade. But since it affects only international players thus it is not as big a

threat as some of other threats.

_State of Recession in the economy

The apparel industry gets severely hit during recession because of less liquidity in the

market. This industry is an export-oriented industry which lies in doldrums during this

stage.

Competition from global players

The major exporters of garments from all over the world are giving tough competition to

India as they are providing higher productivity with lower costs. Competition is not likely

to remain just in the exports space, the industry is likely to face competition from cheaper

imports as well. This is likely to effect the domestic market and may lead to increased

consolidation.


50/54

FINDINGS

After understanding the industrial and economic scenarios we would like to

List out my findings to Indian companies operating in garmentindustry:

y Industrialists are consider the expenditure on R&D and technology as a cost, it

should be considered as an investment because it pays rich dividend in future.

y There is no way of communicating to customers, like sending information about

new products, offers, stocks, etc

y retails apparel stores did not rely upon their own Brand name they just rely upon

the brand names of the wears available in the stores

y Industrialists are not improving the standard of labors why because garment

manufacturing is a labor intensive industry. The productivity of industry directly

depends upon the productivity of labor.

y They didt give priority to consumers opinion.

y Give priority to consumers opinion. Keep in touch with customers by creating

loyalty clubs and online data bases and opinion leaders.

y Apparel retail stores that mostly Instore advertisements to communicate various

promotional offers, thus only that part of population is reached that is already

visiting the stores.


51/54

RECOMMENDATIONS

After understanding the industrial and economic scenarios we would like to

give following recommendations to Indian companies operating in garmentindustry:

y More emphasis should be given on the micro and macro level economic factors.

These factors indirectly or sometimes directly affects each and every business in

the economy, marketers should be proactive enough to foresee the future impact

of these factors on their business.

y Look for co-branding: It involves merging two or more well known brands into a

single product. It is an effective way to leverage strong brands and helps in

gaining synergy by having the best combination of unique strength each brand

has. Co-branding can be based on innovation, ingredient, alliance, supply chain or

any other.

y Find out new ways of communicating to customers, like sending information

about new products, offers, stocks, etc through sms to cell phones.

y Industrialists shouldnt consider the expenditure on R&D and technology as a

cost, it should be considered as an investment because it pays rich dividend in

future.

y Industrialists must emphasize on improving the standard of labors because

garment manufacturing is a labor intensive industry. The productivity of industry

directly depends upon the productivity of labor.

y Give priority to consumers opinion. Keep in touch with customers by creating

loyalty clubs and online data bases and opinion leaders.

y Marketers are under estimating the importance of Visual merchandising, visualmerchandisers not only makes the store look impressive but they also makes sure

right wears are kept at the right

y Blend up the bollywood, cricket and other entertainment mix with other areas

such as product design, distribution channel, price, promotion activities. Give


52/54

priority to consumers opinion. Keep in touch with customers by creating loyalty

clubs and online data bases and opinion leaders.

y It has been seen in apparel retail stores that mostly Instore advertisements to

communicate various promotional offers, thus only that part of population is

reached that is already visiting the stores. Thus using Outdoor advertising &

promotional campaigns is quite important.

y Through research it was revealed that majority of customers prefer to buy with

family members or with friends, and such partners also influence the purchase

decisions of the buyer. Thus its necessary to have a strategy to impress these

influencers. Having an associate loyalty card thus should always be a part of the

loyalty program.

y For retails apparel stores its imperative to build their own Brand name they cant

just rely upon the brand names of the wears available in the stores.


53/54

CONCLUSION :

The trends discussed above clearly show that the fashion business is exploring all aspects

of expansion i.e. it is bound for a multilateral expansion rather than only unilateral

expansion.

y Multi lateral expansion is happening at every part of the value chain as well as for

every consumer segment.

y The Indian Garment Industry is taking cue from international standards as well as

the burgeoning consumer appetite to create their own growth path.

y Fashion companies are taking a much larger perspective of this industry in India

and consolidating their position to face it.

y On the other hand, the Indian consumer is at a preliminary stage of development

and yet due to international exposure trying to keep pace with the international

fashion scene creating unprecedented pressure on companies to perform.

y This is a window of opportunity which the Indian Garment industry should make

the most of before it reaches maturity which will signify slowdown.

Companies need to react as well as participate through in-depth understanding of fashion,

consumer demands & micro/macro level economic factors to take on this challenge.


54/54

BIBILOGRAPHY :

www.ncaer.com

www.fibre2fashion.com

www.indiaexports.com

Images Year Book 2008

India Retail Report 2009

Apparel Talk Magazine July 2008 Issue

Apparel Export Promotion Council

Marketing White Book 2007

Marketing Management by Philip Kotler

Documents

Copy of I A P